Vadel5011 Vadel5011
  • 24-05-2023
  • Business
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Stock A has a beta of 1.20 and Stock B has a beta of 0.8.
Suppose rf = 2% and RM = 12%.
(a) According to the CAPM, what are the expected returns for
each stock?
(b) What is the expected return of an e

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